LANSING, Mich. — Two major housing trade associations in Michigan are taking legal action to stop recently adopted residential construction and energy-efficiency codes, claiming the new rules will significantly raise building costs and reduce home affordability.

The lawsuit, filed this week, challenges the state’s updated building standards, which were introduced as part of efforts to improve energy conservation and align with national best practices. However, the plaintiffs — including the Home Builders Association of Michigan and the Michigan Manufactured Housing Association — argue the regulations go too far.

They claim the changes will make it harder for average buyers to afford new homes, especially in a housing market already strained by high interest rates and limited inventory.

"This lawsuit is not about resisting energy efficiency," said a spokesperson for the Home Builders Association of Michigan. "It's about ensuring that new policies don’t drive up the cost of homes to the point where working families are priced out of the market."

The plaintiffs also raised concerns over how quickly the codes were implemented and questioned whether the public had sufficient input during the process.

The lawsuit reflects growing tension nationwide between state-level climate goals and the realities of housing affordability. While updated codes typically improve long-term energy efficiency and lower utility bills, builders argue the upfront costs of compliance can add tens of thousands of dollars to home prices — costs that may not be recoverable in lower-income or rural markets.

In Michigan, where housing affordability has become a major issue, the legal challenge could delay implementation of the new standards and prompt wider debate about how best to balance sustainability with access to housing.

If the lawsuit succeeds, it may slow or modify the rollout of Michigan’s updated codes, which are part of a broader push to meet carbon reduction targets and modernize building practices. If it fails, builders may face new requirements that reshape how homes are designed and priced across the state.

Observers are watching the case closely, as its outcome could influence similar challenges in other states implementing updated energy codes.

Originally reported by David Eggert in Crains Grand Rapids.